Question 1 The following information reveals the market condition of organic shampoo: Qd = 900 3P, where ad is the quantity demanded in number of bottles and P is the price of a bottle of organic shampoo Q5 = 300 + P, where (15 is the quantity supplied in number of bottles (3) lb) (C) State the equilibrium condition. Calculate the equilibrium price and equilibrium quantity of organic shampoo. Draw a well-labeiled demand-and-supply diagram for the market for organic shampoo with all relevant figures. (8 marks) Calculate the amount of consumer surplus, producer surplus, total surplus and total benefit of the market for organic shampoo. Show your workings. (5 marks) Suppose a news report reveals the effectiveness of the organic shampoo is very low. (1) Use a demand and supply analysis to explain the effect(s) on the equilibrium price and equilibrium quantity of organic shampoo. Indicate this market change in the same diagram of part (a). (3 marks) (ii) With the aids of your diagram in part (a) and (c){i), describe the change of the total surplus. (2 marks) (iii) In view of this market change, could the market of organic shampoo be considered as efficient under the new market equilibrium condition? Explain. (2 marks) (Total: 20 marks)